LYV stuck within tight trading range
Live Nation Entertainment Inc. (LYV) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, LYV finished Thursday at 45.94 edging higher $0.04 (0.09%), strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LYV as at Mar 26, 2020):
Thursday's trading range has been $3.15 (6.85%), that's far below the last trading month's daily average range of $6.08. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LYV. Prices continued to consolidate within a tight trading range between 40.53 and 46.77 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on March 6th, LYV lost -10.83% on the following trading day.
After trading down to 43.62 earlier during the day, the stock bounced off the key technical support level at 43.63 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 46.64 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 46.77.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Live Nation. Out of 70 times, LYV closed higher 51.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 72.86% with an average market move of 1.98%.